Property purchase procedures:

A preliminary or “promise of sale” agreement is signed, binding the vendor to sell and the purchaser to acquire the property on terms and conditions agreed upon, subject to good title, as well as issuing of all relative permits. On signing of the agreements, a 10% - 20% deposit is usually lodged with the Estate Agent as intermediary.

The preliminary agreement is usually valid for 3-6 months, or longer, if agreeable to both parties. During this period, the Notary (Solicitor) will undertake to submit all necessary applications and conduct researches on the property to prove good title, which is guaranteed with a general hypothec by vendors on all their present and future property. Preliminary agreements and Contracts may be written in Maltese or in English, The remaining balance is paid and vacant possession is given by the vendor on contract.

Funds required:

When buying a home, it is important to be aware of the funds required so that you are not caught unawares too late into negotiations. We work with you in order to ensure that the purchase of your home is affordable, whilst still enjoying life as you know it.

• Funds required upon signing the preliminary agreement:

o	10/20% deposit
o	1% pre-payment of stamp duty
o	€232.94 for A.I.P. (Application of Immovable Property)

• Funds required upon signing final contract:

o	Balance of price
o	Balance of stamp duty – 4%

Legal fees and expenses – approx 2%, certain cases may require more in-depth work and knowledge, depending on the situation.

Finance and taxation:

• Mortgage facilities are available for the purchase of property from a number of banking institutions
• Capital gains tax may be incurred when selling your property. The taxable element is the difference between the cost price and the selling price, less any costs incurred such as legal fees, improvements, agency fees and an allowance for inflation and cost of maintenance made during ownership. Tax is collected by the Notary before whom the deeds are signed by way of a provisional tax at 7% which is calculated on the value of the property sold.
• In the event of death, the beneficiary is liable to 5% transfer tax on the value of immovable property